The BBC is facing a fierce backlash over plans to spend as much as £63 million on taxis for its employees and on-screen talent, even as it warns of the need to make deep cuts to its programming budgets.
A Lucrative Five-Year Contract
Details of the substantial expenditure have emerged from a tender advertised on a government procurement website. The corporation is seeking providers for a new five-year contract to fund a round-the-clock cab service for staff, presenters, guests, and equipment transport.
The potential £63 million deal has been split into two parts. One lot, valued at approximately £35.5 million, is for an app-based 'ride-hail' service. A second contract, worth around £17 million, will cover pre-booked journeys both within the UK and overseas.
The contracts are scheduled to run from July 2027 to June 2030, with an option to extend for a further two years, which could push the total bill to the eye-watering £63 million figure.
Spending Amid a Financial 'Challenge'
This planned splurge comes at a time of severe financial strain for the broadcaster. The BBC is reportedly losing close to £1 billion annually as growing numbers of households ditch the TV licence, claiming they only use streaming services.
To address a significant funding gap, bosses have warned they must slash £150 million from programme budgets. Industry insiders fear this could lead to severe cuts to flagship shows, potentially endangering popular programmes like The Traitors, Strictly Come Dancing, and award-winning dramas such as Wolf Hall. Some shows may be axed entirely, and new commissions drastically reduced.
The controversy is further inflamed by the confirmation that the TV licence fee is expected to rise from its current £174.50 to over £180, adding to household bills.
Critics Condemn 'Out of Touch' Spending
The revelation has triggered outrage from campaigners and politicians, who accuse the BBC of being profoundly disconnected from the financial realities facing licence fee payers.
Shimeon Lee, a policy analyst at the TaxPayers' Alliance, stated: 'It's a perfect example of how the BBC treats licence fee-payers' money as an open tab. While households are struggling to cover energy bills and food costs, the BBC is lining up app-based ride-hailing and international chauffeured travel for its own staff.'
Reform UK deputy leader Richard Tice also criticised the move, quipping: 'A fat cat limo contract is up for grabs for BBC staff for more than £10million per year. No wonder the licence fee is so expensive.'
The tender emerges just months after the BBC admitted in its annual plan that it faces an 'unprecedented content funding challenge'. The broadcaster has faced previous embarrassment over taxi costs, including a £484 fare for a journey from Salford to Oxford and a £288 charge for a 15-mile trip in London.
In response to the criticism, a BBC source noted that any taxi costs incurred by its commercial arm, BBC Studios, would be repaid to central funds, and that the corporation routinely recovers VAT on applicable purchases.
The BBC issued a statement defending its processes, saying: 'We have strict guidelines in place around the use of taxis and when their use is and isn't acceptable. The figure quoted is the maximum potential value.'
